Union Customs Code
Key Messages
Lee Barham
Customs Enforcement
HMRC London
November 2015
Changes taking effect on 1 May 2016
• €10 waiver ends
• Onward Supply Relief (OSR) only allowed with full declarations and Simplified
Declaration Procedure (SDP)
No new imports allowed to:
• Inward Processing (Drawback)
• Processing under Customs Control (PCC)
• Type D customs warehousing
• Low Value Bulking Imports (LVBI)
• Binding decisions becomes binding on the Decision Holder
Protective marking – Unclassified
UCC Presentation | April 2015 | 2
Use of Community Customs Code authorisations
after 1 May 2016
• IP (D) authorisations end
• LVBI authorisations end
• PCC authorisations can be used as IP suspension
• Type D authorisations become Type C or Type E
• Open ended authorisations will be reassessed by May 19
• Authorisations with an end date can be used till they expire (or May 19
whichever is earliest)
• Amendments made to 2913/92 authorisations after 1 May 2016 which have a
substantive effect may trigger the need to change to a UCC authorisation.
• From 1 May 2016 all TS operations and premises must be run under the UCC
rules regardless of whether a Community Customs Code authorisation is still
being used
Protective marking – Unclassified
UCC Presentation | April 2015 | 3
Authorised Economic Operator - General
Status of AEO
• Compliant and trustworthy economic operators
• Authorisation for customs simplifications (AEOC) or
• Authorisation for security and safety (AEOS)
• or both.
Easier access to other customs simplifications
Benefit from facilitations relating to security and safety matters.
Given more favourable treatment for customs controls, e.g.,
fewer physical and documentary controls.
Protective marking – Unclassified
Key Messages - AEOC
Self assessment questionnaire being amended to include new
criteria
AEO C status ‘deems’ criteria for other customs regimes:
• Compliance,
• Management of operations
• Practical competency
• Solvency
Applications for ‘other’ regimes will only consider new regime
specific matters.
Protective marking – Unclassified
Changes introduced by UCC - AEOC
The requirement to assess compliance in other taxation areas
when considering an applicant’s compliance
The requirement to demonstrate practical standards of
competence or professional qualifications relating to the specific
customs operations undertaken by the authorised party.
Protective marking – Unclassified
Benefits from AEOS authorisation
A lower risk score for customs physical and documentary checks
Consignments may be fast-tracked through customs control
Reduced data requirements for the security and safety
declarations
Mutual recognition agreements (MRA) with countries outside of
the European Union, for example USA
Protective marking – Unclassified
Special Procedures - Generic
Retrospection – limited to no more than 12 months, subject to a
number of conditions.
Simplified Authorisations for IP, OP, End Use, TA - now called
‘Authorisation by Declaration’. Various conditions.
New application forms.
Concept of transferring rights and obligations must be approved
by supervising office.
Protective marking – Unclassified
Movement of Goods-between different places in the
territory of the Union
• IP,TA and End Use – no formalities other than good record
keeping (different places. Same or different authorisations / MS)
• OPR – no formalities customs office of placement to customs
office of exit
• CW - no formalities other than good record keeping for
movements between facilities in the same authorisation, office
of placement to storage facilities. (Different authorisation
declaration in/out)
Protective marking – Unclassified
UCC Presentation | April 2015 | 9
Transition Arrangements - UCC – General Exports
Exports which are not customs cleared before 1 May 2016 will be
released under the UCC provisions
Protective marking – Unclassified
Strategic Export Control
in the United Kingdom
Lee Barham
Customs Enforcement
HMRC London
Protective marking – Unclassified, Protect, Restricted (delete as required)
Role of Customs
• Prevent the illegal export and transit of controlled goods
• Seize unlicensed goods detected at the frontier
• Take offence action (e.g. criminal investigation) for unlicensed arms exports
and brokering
• Provide a deterrent
Protective marking – Unclassified, Protect, Restricted (delete as required)
HMRC NL Standard | 05/08/2013 | 12
Offence Action
• Seize goods
• Issue warning letter
• Issue appropriate penalty or fine
• In less serious cases, goods may be returned if an export licence is granted
• In more serious cases, refer to criminal investigation team
• Deliberate offences up to 10 years imprisonment and/or unlimited fine.
• Any offence can result in a fine of 3 times the value of the goods.
• For less serious breaches, restoration fee or written warning.
Protective marking – Unclassified, Protect, Restricted (delete as required)
Results

2014/15 - 196 consignments seized (Military, paramilitary, dual-use goods & goods
subject to sanctions)

2014/15 - 219 exports prevented/disrupted on end-use grounds (i.e. because it was
suspected that the goods might be used in a military or WMD programme)

17 individuals and 4 companies prosecuted since 2005 (exports, sanctions & trade
controls)

35 Compound Penalties in lieu of prosecution since 2009 ranging from £1,000 £500,000+)

Hundreds of written warnings to exporters

Hundreds of UK companies contacted or visited
Protective marking – Unclassified, Protect, Restricted (delete as required)
Lee Barham
Customs Enforcement Policy
Customs Directorate
HM Revenue & Customs
100 Parliament Street
London
SW1A 2BQ
Telephone no.+ 44 (0) 3000 585 754
lee.barham@hmrc.gsi.gov.uk
Protective marking – Unclassified, Protect, Restricted (delete as required)